Government to allow NRN joint ventures to issue foreign-currency IPOs
Summary
Nepalis living abroad will soon be able to invest directly in Nepal-based companies through foreign-currency IPOs, as the government moves to mobilise diaspora capital. The proposed NRN Nepal Development Fund aims to raise Rs10 billion and channel overseas Nepali savings into infrastructure, hydropower, tourism and other sectors.
Key Points
- SEBON has amended securities regulations to allow government and NRN joint ventures to raise up to 85 percent of paid-up capital through public share issues.
- The change is intended to facilitate the proposed NRN Nepal Development Fund, which aims to raise Rs10 billion from non-resident Nepalis through a foreign-currency IPO.
- Finance Minister Swarnim Wagle urged the diaspora to invest in sectors that create jobs and reduce import dependence.
- The fund plans to invest in infrastructure, hydropower, tourism, agriculture and information technology, with returns eligible for repatriation abroad.
